Arkansas Wage Garnishment Checklist

Arkansas Wage Garnishment Checklist

What Wage Garnishment Means

Wage garnishment represents a legal enforcement action that allows the Arkansas Department of Finance and Administration to collect unpaid state income tax directly from your paycheck.

Arkansas does not need your permission to issue this order once you owe back taxes and have not responded to prior collection notices.

Your employer receives the garnishment order and must withhold a specific portion of your wages each pay period. Withheld funds go directly to the state to reduce your outstanding tax debt.

Why Arkansas Issues Wage Garnishments

The state uses wage garnishment when a taxpayer owes Arkansas income tax and has not paid after receiving demand notices or responding to payment arrangement offers. Arkansas law authorizes the Department of Finance and Administration to collect delinquent taxes through administrative action without requiring court approval.

What Happens If You Ignore the Garnishment

Your employer will continue to withhold the required amount from each paycheck and send it to the state regardless of whether you respond to the notice. Ignoring the garnishment does not stop the collection action.

The state may pursue additional enforcement measures, including placing liens on your property, seizing bank accounts through a writ of execution, or referring your case to the

Arkansas Attorney General’s office for further collection efforts. Continued nonpayment results in additional penalties and interest charges being added to your original tax liability.

What a Garnishment Does Not Mean

A wage garnishment does not mean the state has frozen all your assets or taken broad legal action against you beyond the specific collection measure. The garnishment represents a collection mechanism rather than a criminal charge, and you will not face jail time solely for owing state income taxes.

Steps to Take After Receiving Notice

Verify the Notice’s Authenticity

Check that the notice originates from the Arkansas Department of Finance and Administration or an authorized state office. Look for official letterhead, department contact information, and a case or reference number on all documents.

Review the Notice Details

Identify which tax year or years the garnishment covers and note the total debt amount listed.

Record the effective date when your employer must begin withholding funds from your paycheck. Find any deadline for responding or requesting review if one appears on the notice.

Write down the case number and keep it with your financial records.

Gather Your Tax Documentation

Collect all prior notices from the Arkansas Department of Finance and Administration about this debt. Locate copies of your tax returns for the years in question if you filed them.

Calculate Your Financial Impact

Determine how much of each paycheck will be withheld based on the garnishment amount and your current wages under applicable garnishment laws. Assess whether the garnishment creates financial hardship for essential living expenses.

Document any other wage garnishments or court-ordered deductions already coming from your paycheck, including child support or other obligations. List your basic monthly expenses to understand your complete financial position.

Contact the Department Immediately

Call the Arkansas Department of Finance and Administration using the contact number on the garnishment notice. Have your Social Security number, case number, and relevant documentation ready when you call.

Understand Your Appeal Rights

Arkansas law does not provide a pre-garnishment hearing right specific to the wage garnishment itself under current garnishment laws. However, you have the right to protest the underlying tax assessment by filing a petition with the Tax Appeals Commission within ninety days of receiving a Notice of Proposed Assessment.

This protest must occur before the Department files a Certificate of Indebtedness, which functions similarly to a writ of execution under state collection procedures. Once garnishment begins, there is no separate post-garnishment hearing process for state tax garnishments under

Arkansas law.

Explore Payment Plan Options

Ask the Department whether you can establish a payment plan instead of continuing the wage garnishment. Inquire about the terms of an installment agreement, including monthly payment amounts and the agreement duration.

Notify Your Employer Appropriately

Inform your employer’s payroll or human resources department that you received a garnishment notice if the state has not already contacted them. Ask your employer to confirm receipt of the garnishment order from Arkansas authorities.

Monitor Your Paychecks Carefully

Review your pay stubs starting on the effective date shown in the garnishment notice. Verify that the correct amount appears as withheld for the Arkansas tax garnishment. Keep copies of all pay stubs showing the garnishment deduction for your records. Report any errors or unexpected withholding amounts to your employer’s payroll department immediately to ensure accurate processing.

Document All Communications

Keep detailed records of every call, email, letter, or contact with the Arkansas Department of

Finance and Administration. Save copies of all notices, letters, and official documents you receive from the state.

Common Mistakes to Avoid

Missing response deadlines significantly limits your options, so note any deadlines on your notice and act before they expire. Many taxpayers assume nothing can be done once garnishment begins, but contacting the Department to discuss payment plans or hardship situations may provide solutions.

Understanding Employment Protections

Federal law under the Consumer Credit Protection Act prohibits employers from terminating employees because of wage garnishment for any single debt. Arkansas statute provides additional protection only when an employee has multiple garnishments, and one involves child support obligations under federal law.

Employees facing multiple garnishments that do not include child support are not protected from termination under Arkansas law. The correct agency for employment-related complaints is the

Arkansas Department of Labor and Licensing.

What Happens After You Respond

The state typically continues withholding the garnishment amount from your paycheck according to the schedule in the order. Your employer sends the withheld funds to the Arkansas

Department of Finance and Administration on time.

Facing State Tax Enforcement Action?

If you’ve received a notice related to sales tax or payroll tax enforcement, and aren’t sure how to respond, our team can help you understand your options and next steps.